PARRIS N. GLENDENING, Governor                          H.B. 1154

(14) "PARTICIPATION" MEANS AN EXTENSION OF CREDIT IN WHICH AN
UNDIVIDED OWNERSHIP INTEREST IS HELD ON A PRO RATA BASIS IN A SINGLE
LOAN OR POOL OF LOANS AND RELATED COLLATERAL. IN A LOAN PARTICIPATION,
THE CREDIT ORIGINATOR INITIALLY MAKES THE LOAN AND THEN SUBSEQUENTLY
RESELLS ALL OR A PORTION OF IT TO OTHER LENDERS. THE PARTICIPATION MAY
OR MAY NOT BE KNOWN TO THE BORROWER.

(15) "PAYROLL FACTOR" MEANS THE FRACTION RESULTING FROM THE
COMPUTATION IN SUBSECTION (E) OF THIS SECTION.

(16) "PERSON" MEANS AN INDIVIDUAL, ESTATE, TRUST. PARTNERSHIP,
CORPORATION, AND ANY OTHER BUSINESS ENTITY.

(17) (I) "PRINCIPAL BASE OF OPERATIONS" WITH RESPECT TO
TRANSPORTATION PROPERTY MEANS THE PLACE OF MORE OR LESS PERMANENT
NATURE FROM WHICH THE PROPERTY IS REGULARLY DIRECTED OR CONTROLLED.

(II) WITH RESPECT TO AN EMPLOYEE, THE "PRINCIPAL BASE OF
OPERATIONS" MEANS THE PLACE OF MORE OR LESS PERMANENT NATURE FROM
WHICH THE EMPLOYEE REGULARLY:

1. STARTS HIS OR HER WORK AND TO WHICH HE OR SHE
CUSTOMARILY RETURNS IN ORDER TO RECEIVE INSTRUCTIONS FROM HIS OR HER
EMPLOYER; OR

2. COMMUNICATES WITH HIS OR HER CUSTOMERS OR
OTHER PERSONS; OR

3. PERFORMS ANY OTHER FUNCTIONS NECESSARY TO THE
EXERCISE OF HIS OR HER TRADE OR PROFESSION AT SOME OTHER POINT OR
POINTS.

(18) "PROPERTY FACTOR" MEANS THE FRACTION RESULTING FROM THE
COMPUTATION IN SUBSECTION (D) OF THIS SECTION.

(19) (I) "REAL PROPERTY OWNED" AND "TANGIBLE PERSONAL
PROPERTY OWNED" MEAN REAL AND TANGIBLE PERSONAL PROPERTY,
RESPECTIVELY:

1. ON WHICH THE BANK OR TRUST COMPANY MAY CLAIM
DEPRECIATION FOR FEDERAL INCOME TAX PURPOSES; OR

2. TO WHICH THE BANK OR TRUST COMPANY HOLDS LEGAL
TITLE AND ON WHICH NO OTHER PERSON MAY CLAIM DEPRECIATION FOR FEDERAL
INCOME TAX PURPOSES (OR COULD CLAIM DEPRECIATION IF SUBJECT TO FEDERAL
INCOME TAX).

(II) "REAL AND TANGIBLE PERSONAL PROPERTY" DO NOT
INCLUDE COIN, CURRENCY, OR PROPERTY ACQUIRED IN LIEU OF OR PURSUANT TO
A FORECLOSURE.

(20) "RECEIPTS FACTOR" MEANS THE FRACTION RESULTING FROM THE
COMPUTATION IN SUBSECTION (C) OF THIS SECTION.

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